What would it mean to have a compensation philosophy grounded in our organization’s values of love, trust, authenticity, and inclusion? In 2019, we set ourselves on a course to address this question by establishing the Pay Philosophy Project. The goal? To create a compensation structure that is equitable and transparent, that creates a deeper sense of community among staff, and that is aligned with our mission.
Love and pay equity
Early in the project, we recognized that our values meant we needed to examine what it means to provide a living wage. And using Michigan-based data for a living wage, the Institute increased its minimum wage from $14 per hour to $21 per hour over three years and committed to paying all staff the market rate, or better, for their roles.
Inclusion and trust in pay increases
Next, we asked ourselves, What would a pay increase approach aligned with Fetzer’s mission and values look like? Honoring our commitment to trust our community and include them in our decision-making processes, especially concerning compensation, we invited Institute staff to volunteer for a working group tasked to examine this critical question. This participatory approach gave voice to a wide range of staff members—hourly and salaried, shorter and longer lengths of service, programmatic and operational—who shared the responsibility of holding the whole organization in this work by bringing their perspectives and experience into these discussions. They met over eight two-hour sessions, dialoguing, reviewing data, and collaborating to recommend a salary increase approach. The Institute provided the group with time, space, and transparency of Institute data, including compensation structures and anonymous salary information. This helped reinforce the foundation of trust that is so critical between staff, leadership, and our board. This entire approach was grounded in a belief that a robust and mission-aligned pay philosophy requires inclusion and consideration of diverse perspectives representing all areas of our community.
Authenticity in dealing with our challenges the best way we can
The working group identified two compelling points for us to consider. First was that the cost of living had increased 5.9% for the year, and we needed to try and keep pace. Secondly, they suggested that a pooled approach to salary increases (our annual pay increase budget divided evenly among staff) could honor equity and continue our commitment to a living wage. Through the work of this committee, we determined the need for immediate action was critical. Working with our leadership and the board, the Institute implemented an approach that addresses both equity and the dramatic increase in inflation. This means that all staff, regardless of the length of their service, received a salary increase—some as much as 13%—for 2022, and continue to make a thriving wage.
Operationalizing our values means that the Institute doesn't just aspire to but is committed to being the change we want to see in the world. While not without challenges and constraints, devoting time and resources to our pay philosophy work ensures that our values are foundational in everything we do. As an HR leader for the Institute, I am both excited by and proud of this work because I believe that having our values drive our organizational culture results in staff and leadership being inspired, empowered, and deeply connected to our mission.
Moving into our fourth year of this work, we will continue to use a collaborative and inclusive approach as we determine how to structure a performance development program grounded in our values. We hope that by continuing to operationalize our values into all of our human resources and organizational culture work, we will be living into our mission of helping build the spiritual foundation for a loving world.
Christine Lajoie, senior manager of human resources at Fetzer, believes that every organizational action has a cultural impact and thus must be grounded in the values of the organization.